What do the community think about Dryships (DRYS) For a Covered Call or Naked Put play
Specific on this stock
Answers
2183 points
ChaosNantuko answered one year ago …
not liking the covered call/sell naked put idea here.
Even going 4 months out, you only have about $15 worth of protection with the ATM option, and its fell $25 over the last week or so. The risk/reward just isn't worth it.
202 points
Lobo answered one year ago …
With this stock I watch and scratch my head. It was so low for a while it defied logic. Then it was over $100+, but dropped $10 per share in one day recently. Thus, at $90+ now and considering alot of good things going for it, it might not be the best time to sell a covered call. Who knows about this stock?! It seems to me to move rather closely along with the big indexes. If the market takes even a small rebound, DRYS may again be at $100+.
I like the selling the put idea. If you don't want to buy, however, you might consider deep in the money. The in-the-money puts do seem to have considerable value, last I looked. I was just waiting out the June expiration for 55 and 65 puts. Worthless right? I was amazed they gained some in value for the put buyer with such a short time left until June 21 being so deep in-the-money.
